Greener lending explained
How some of your savings can do more by supporting our greener lending approach.
We know "green" gets thrown around a lot
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So, here’s exactly what we mean when we say your savings help us support greener choices. And how we decide what really counts.
What we mean by "greener lending"
Greener lending is when we use part of customer savings to fund lending that is designed to support lower-impact or energy-efficient choices.
But that’s not enough on its own. To meet our green criteria at Tandem, a loan has to go above and beyond standard lending in the UK. We're not here to settle for "good enough".
What we count as greener
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We judge every loan against two benchmarks:
The EU Green Taxonomy
This is the EU’s official list of what’s classed as “green”. Things like solar panels, electric vehicles, or energy-efficient homes. It’s detailed, science-based, and not exactly light reading. But it gives us a solid foundation.
Tandem's "Pathway to Green"
We think it’s important to bring our customers on the sustainability journey, so we’ve created our own criteria that recognises improvements that are measurably better than average, even if they’re not “perfect”.
- EPC C-rated homes (the UK average is EPC D)
- Lower-emission hybrid, petrol or diesel vehicles emitting <110g CO₂/km (tailpipe) — driving just 5 km produces less CO₂ than your morning latte!*
- High-efficiency gas boilers (ErP “A” rated) replacing older, less efficient models
What we don't count
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If a loan doesn’t clearly beat the national average for emissions or energy efficiency, we don’t include it in our greener lending calculation.
Homes
Lower than EPC C? Doesn't make the cut.
Cars
Emitting more than 110g CO₂ per km
Boiler upgrades
If it isn't ErP "A" rated, it doesn't qualify.
What your savings have helped fund
Here's a snapshot of how it breaks down:
Read the full 2024 ESG Report
Where we're currently at...
£572m+
Lent to improve UK home efficency
From new insulations and better glazing to cleaner heating systems.
70,000+
Tonnes of CO₂ saved by our customers in 2024
That’s the equivalent of taking more than 15,000 petrol cars off the road for a year.
38%
Of loans taken out in 2024 were greener
That means they were either “green” according to the EU Taxonomy or “pathway to green” according to our own definition
100%
Of our operational emissions are offset
That means all our emissions except for “invested emissions” which are those related to our loans.
Why it matters
You trust us with your money. You deserve to know what it’s helping to support.
Greener lending isn't just a nice idea
It’s a practical way to encourage lower-impact choices. And we’re doing it now, not waiting for perfect.
We don’t invest in polluting, high emitting industries. Our only investments are in the homes and vehicles belonging to our customers.
We're proud to be recognised by Bank.Green as one of the UK's most sustainable banks – and while we're not perfect, we're pushing for better every year.
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Check out our FAQs for answers to your burning questions, or give our friendly support teams a shout.